Net Metering in CA: Utilities vs the Solar Industry

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Boomer23

Well-known member
Joined
May 23, 2010
Messages
3,561
Location
Orange County, CA
I'm rather a novice in this area, so please bear with me and correct any misconceptions that I may have in the following.

I received an email from the Sierra Club advocating signing this petition to Sacramento legislators asking for their support for the expansion of rooftop solar:

https://secure.sierraclub.org/site/...BCOAW07&JServSessionIdr004=kp9e9mbpk2.app223a

I wondered what event or pending action prompted this push for action. While I couldn't find any pending legislation or upcoming PUC hearings on the matter, I did some research, and key to this is the argument between California's three largest utilities and solar advocates over the size of the Net Energy Metering (NEM) cap in the state. Prior to this, I didn't know that a cap or time limit exists for net metering, and that CPUC will temporarily suspend new NEM applications at the end of 2014, so this has already opened my eyes a bit.

It turns out that the Sierra Club email was prompted by a study commissioned by Vote Solar, a non-profit advocacy group, to examine the costs of NEM to the utilities and thereby to ratepayers. According to this article in PV Tech, a previous study found $137 million in costs at full subscription of the CA Solar Initiative, and the utilities are arguing that at full NEM build-out, the costs would be in the billions. But the new study finds a very different result; a $92 million BENEFIT at the current level of system installation. The study found a small benefit in residential system placements, while the lion's share of the benefits was from commercial placements. One key difference between the studies is in the basic cost factors that are included. Here is the PV Tech article.

http://www.pv-tech.org/editors_blog/net_energy_metering_battle_fires_up_solar_industry" onclick="window.open(this.href);return false;

In addition, a new law, formerly AB 2514, directs the CPUC to complete a study by Oct 1, 2013 to determine who bears the costs and who benefits from the NEM program. Vote Solar says that the utilities quietly amended the bill to read in their favor by having the language changed to include the costs of delivery and transmission of the power so that retail credits to the owner of the solar array would be reduced.

Source: Greentech Solar Media: http://www.greentechmedia.com/articles/read/California-Utilities-Trying-An-End-Run-Around-PUC-Net-Metering-Ruling" onclick="window.open(this.href);return false;

AB 2514 text: http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201120120AB2514" onclick="window.open(this.href);return false;

I signed the petition, since I believe that the societal benefits of rooftop solar outweigh the costs that are being brought up by the utilities.

Make up your own minds and discuss here if you are so motivated.
 
Thanks for bringing this issue to our attention. The CPUC has a web page devoted to the mandated cost-benefit study:

http://www.cpuc.ca.gov/PUC/energy/Solar/nem_cost_benefit_evaluation.htm

The Commission has selected Energy and Environmental Economics, Inc. [E3] to conduct the study:

http://www.ethree.com

The utilities and solar advocacy groups have already weighed in on what and how the study should measure the costs and benefits. There is a lot of fairly technical -- to me -- information in the final scope of work, which is linked on the CPUC web page. What is clear is that the utilities who pushed for the bill in the first place want to trash solar, so I will also be signing the Sierra Club petition.
 
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